PREPARATION TO RESOLVE THE YEAR2000 IMPACT

-Form57 (Y2K)- Preparation to resolve the Year2000 impact. Company Phata Leasing Public Company Limied. Type of Business "Leasing". Head Office located at 252/6 29th Fl. Muang Thai-Phatra Complex 1, Rachadaphisek Rd., HuayKwang, Bangkok 10320 Thailand. Telephone (662) 693-2288 Fax (662) 693-2299. Submitting the report concerning the preparation to resolve the Year2000 impact. The 2nd report submitted as of 30 September 1998 1. Preparation to resolve the Year2000 impact. The company has awarded Progress Software Company Limited (PSC) as its consultation and to develop implementation for the Y2K project. It is under responsible of Business Development and Technology Office, directed by Mrs. Bunjarat Suharitdamrong. The project has started by creating awareness to the management and employee and assessing the impact of the Year2000 since June 1998 The assessment can be categorized as follows: 1. Hardware 2. Software (including application developed in-house, and by vendors and system software etc.) 3. Interfacing with Trading Partners 4. Non-IT systems, facilities and equipment. 2. The Year2000 impact to the business operation. 2.1 The effect to computer system and operation within the company. The impact would be on the date-sensitive systems. They are classified as computer hardware and software, in-house developed applications and non-IT systems. As of 30 September 1998, the results from the assessment are as follows: 2.1.1 Hardware Total Y2K Ready Y2K Ready Not Ready or w/ Minor Issues Unknown File Server 3 3 - - - PC 54 25 29 - - Others 63 42 - 21 PCs which are ready with minor issues will need a manually set in order to be Y2K ready. Other hardwares which need to identify the readiness are 21 units of uninterrupted power supply (UPS) for PCs. Impact from this category is determined at low risk. 2.1.2 Software (including application developed in-house, and by vendors and system software etc.) Total Y2K Ready Y2K Ready Not Ready or w/ Minor Issues Unknown 3rd party applications 7 7 - - In-house applications 6 - - 4 Databse Management 4 4 - - Operating System 10 4 3 3 and Other System Software Others 11 4 5 2 Most of the PC applications developed in-house are for reporting purpose, not complex and low significant. Some of them will be fixed in-house and the rest will be replaced by newly implemented application. Items that are not ready or ready with minor issues will be upgraded to or replaced by the compliant version. 2.1.3 Interfacing with Trading Partnes There are total of 7 types of transaction the company currently uses. - Sending data/information by diskette which has no date related = 3 types - Receiving data/information on-line which'date' is insignificant = 2 types - Sending data/information on-line which 'date' is insignificant = 1 type - Sending and receiving data/information on-line which 'date' might be significant = 1 type, which is 'Video Banking'. Trading partner whom developed the system informed that there will be a newly Y2K complaint interfacing system launched next year. However, it is determined that impact from this item, if the replacement of this system not ready on time, will be insignificant since there is other substitute method. 2.1.4 Non-IT Systems, Facilities and Equipment Total Y2K Ready Y2K Ready Not Ready or w/ Minor Issues Unknown Non-IT Systems, 18 9 1 8 Facilities and Equipment Besides the readiness/compliant results from vendors, the company has planned to have detail test in-house in order to verify, assure and minimise risks. 2.2 The effect to general business operation. Although there are some potential impacts because of the effect of item 2.1, at low risk, such as computer or application malfuction, cannot provide promptly service or accurately information, the company hope to resolve them on-time as planned. However, contingency plan will be developed to minimise risks. 2.3 The effect from external. As stated in 2.1.3, there is low risk of impact from interfacing transaction. The effect from Y2K impacted customers is possible. However, since the company has varieties of customers business types and sizes, the effect would probably be minimal. At the present, it is found that customers, creditors and other trading partners are aware of the Year2000 impact. 3. The Y2K Project implementation plan. 3.1 Methodology The company's IT and system development committee has awarded Progress Software Company Limited (PSC) as consultant and to develop implementation for the Y2K project. Responsible staff are Mrs. Bunjarat Suharitdamrong and Mr. Prateep Deesrisak of Business Development and Technology Office. In addition, working group includes delegates from each department in order to develop and perform test cases using the industry standard high risk dates. There are 4 types of testing level: 3.1.1 Unit Test 3.1.2 System Test 3.1.3 User Acceptance Test 3.1.4 Integration Test Testing will be performed for both applications developed in-house and by vendors. 3.2 Y2K Implementation Plan Stages of implementation plan was modified and target date has been shifted by one quarter, to be in line and with circumstance. Phase I : Awareness and Assessment June 98 - Aug 98 Present executive and employess to be aware of Y2K potential problems . Assess the Year 2000 impact on the company. Identify core business areas and processes, inventory and analyze systems supporting the core business areas, and prioritize their conversion or replacement. Develop high level plan for the activities that will be required for the Year 2000 effort. Phase II : Renovation/Testing and Validation Sep 98 - Jan 99 Produce a detailed implementation plan that includes reviewing hardware, system software and application software to identify necessary actions, specific tasks and other needs affecting the entire IT environment. Test, verify, and validate converted or replaced platforms, applications, databases, and utilities. Test the performance, functionality, and integration of converted or replaced platforms, applications, databases, utilities, and interfaces in an operational environment. Phase III : Contingency Plan Feb 99 Create contingency plan. Phase IV : Implementation Mar 99 Transfer all tested systems to production. 3.3 Expenses It is estimated that Y2K related expenses would be approximately 2 MB. This also includes the project's consultation expenses. 3.4 Contingency Plan In order to minimise risk and assure that the company will operate its business if impacted by the Year 2000, the contingency plan will be developed. Core business function will be prioritized. The plan will be clearly defined and achievable. Understanding will also be established for the personnel. 4. Present Status Phase 1 of the implementation plan has completed as projected. Phase 2 (Renovation/Testing and Validation) is being implemented. The company has upgraded, modified some main systems. Expenses incurred from the beginning is approximately 300,000 baht. 5. Management Conclusion The company has become awareness of Year 2000 impacts to the operation and mandated it as one of the major factors for acquiring new applications, software and hardware. Therefore, most of our systems are Y2K compliant. Some that need to be upgraded, are on plan and will be taken by the end of this year (1998). Contingency plan will also be developed. However, to assure that the problem would be handled effectively and professionally, on June 1998, the company has awarded Progress Software Company Limited as our consultant to conduct and develop the implementation plan of Y2K project. It is projected to be fully completed by June 1999. We have reviewd this document and agree that all details and information in this document are presented on a need to know basis, and to the best of our knowledge the information are correct, complete, truthful and does not contain any misleading information which may cause any damage or loss to the shareholders. Mrs.Bunjarat Suharitdamrong has been deligated by the board of directors to verify the details in this document. Her signature must appear on every pages of the document to signify the authentication of the document. This document is a translated version and should be distributed together with the original Thai version for reference. Name Position Signature 1. Mr.Banthoon Lamsam Chairman of the Board As per the original Thai version 2. Mr.Visal Khongkha Director " 3. Mr.Vinai Punyarattabandhu Director " 4. Mr.Luxaman Bunnage Director " 5. Mr.Krirkchai Siribhakdi Managing Director " Authorised Representative Name Position Signature Mrs.Bunjarat Suharitdamrong Vice President As per the original Thai version Business Development and Technology Office